Superdry mulls store closures as profits drop 49%

Fashion retailer and brand Superdry has issued a profit warning after pre tax profits fell 49% to £12.9m in the 26 weeks to 27 October 2018.

Group revenue was up 3.1% to £414.6m in FH19 compared with £402m in the first half of 2018.

With regards to its outlook the retailer, which said it relies on cold weather related products, continued to attributed its performance to the unseasonably warm weather in November and December and added its sales “remained under pressure despite a strong performance in the Black Friday week”. In October, founder Julian Dunkerton said he wanted to return to “revive” the company just a week after it issued a profit warning.

Because of this Superdry now expects its annual underlying profit before tax to be in the range of £55m to £70m. In an effort to save £50m by 2022, Superdry also said it would consider store closures.

Euan Sutherland, Superdry chief executive officer, said: “Superdry had a difficult first half, impacted by unseasonably warm weather across our major markets, a consumer economy that is increasingly discount driven and the issues we are addressing in product mix and range. Superdry is responding to its internal challenges as well as a changing world and changing consumers.

“Our comprehensive transformation will ensure Superdry is well positioned as we optimise our routes to market and make our business more efficient. We are confident that our transformation programme combined with the underlying operational strengths of the business will deliver a return to higher levels of growth and profitability while realising geographic expansion opportunities and leveraging our multi-channel operating model to serve customers in whichever way suits them best.”